Alkermes plc. (ALKS) stock analysis

P/E above its 5-year median

Alkermes's P/E of 123.8 is above its own 5-year median of 15.9.

P/E above the industry

Alkermes's P/E of 123.8 is above the Drugs median of 25.0.

EV/EBITDA above its 5-year median

Alkermes's EV/EBITDA of 48.8 is above its 5-year median of 12.7.

P/B above the industry

Alkermes's price-to-book of 4.36 is above the Drugs median of 2.09.

Trading above fair value

The share price of $47.03 is above our fair value estimate of $14.98.

Margin of safety under 20%

The price is 214% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 9.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 10.8% over the last twelve months; the Drugs median is 7.7%.

Guidance raised

Alkermes raised its 2026 Adjusted EBITDA outlook on Feb 25, 2026.

Gross margin slipping

Gross margin was 84.6% over the last twelve months, against 85.1% a year earlier.

Return on equity under 15%

Return on equity was 3.9% over the last twelve months and averaged 11.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.9%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Alkermes's return on equity of 3.9% is above the Drugs median of -57.0%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 4.0% over the last twelve months, against a 5-year average of 8.6%.

Net margin above the industry

Alkermes's net margin of 4.0% is above the Drugs median of -53.5%.

High debt

Debt is 83.1% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 25.8% five years ago to 83.1%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 16.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.30 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.28; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Alkermes has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.